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By Accounting Mcqs No Comments

The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to?

A. General Reserve A/c
B. Profit & Loss A/c
C. Asset A/c
D. Capital Reserve A/c

According to AS-10 on disposal of a previously revalued item of fixed asset, the difference between net disposal proceeds and the net book value should be charged or credited to the Profit & Loss Statement except that to the extent that such a loss is related to an increase which was previously recorded as a credit to revaluation reserve and which has not been subsequently reversed or utilized, it may be charged directly to that account. This balance (no longer needeD. being of capital nature should be transferred to Capital Reserve Account.

Related Mcqs:

  1. An asset must be _______ by the business to be shown as an asset in its “balance sheet”

    A. Possessed
    B. Owned
    C. Controlled
    D. Used

  2. Debit balance = Credit balance in a trial balance indicates that:

    A. No error in recording transactions
    B. No error in posting entries to ledger accounts
    C. Account balances are correct
    D. Mathematically Capital+Liabilities=Assets

  3. Which of the following statements is true with regard to written down value method of depreciation?
    i. The rate at which the asset is written off reduces year after year
    ii. The amount of depreciation provided reduces from year to year
    iii. The rate of depreciation as well as the amount of depreciation reduce year after year
    iv. The value of the asset gets reduced to zero over a period of time

    A. Only (i) above
    B. Only (ii) above
    C. Both (i) and (ii) above
    D. (i),(ii) and (iii) above

  4. The normal balance of asset account is____________?

    A. Credit balance
    B. Debit balance
    C. Cash balance
    D. Neither debit nor credit balance

  5. Which of the following account with normal balance is shown at the debit side of a trial balance?

    A. Rent income account
    B. Creditors account
    C. Unearned income account
    D. Cash account

  6. Which of the following account with normal balance is shown at the credit side of a trial balance?

    A. Cash account
    B. Bank account
    C. Equipment account
    D. Accrued expenses account

  7. If debit balance is greater than creadit balance then the account blance will be__________?

    A. Credit balance
    B. Debit and credit balance
    C. Cash balance
    D. Debit balance

  8. Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?

    A. Errors in cash book
    B. Errors in pass book
    C. Cheques deposited and cleared
    D. Cheques issued but not presented for payment

  9. Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.

    A. $2000
    B. Zero
    C. $3000
    D. $2500

  10. Consider the following data pertaining to the production of a company for a particular month :

    Opening stock of raw material 11,570
    Closing stock of raw material 10,380
    Purchase of raw material during the month 1,28,450
    Total manufacturing cost charged to product 3,39,165
    Factory overheads are applied at the rate of 45% of direct labour cost.
    The amount of factory overheads applied to production is
    A. 65,025
    B. 94,287
    C. 95,020
    D. 1,52,624

The correct answer to the question: "The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to?" is "Capital Reserve A/c".

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